Under the agreement, the parties agreed to dismiss all pending patent litigation. Yahoo will make a one-time up-front licence fee payment to Kudelski — but terms were not disclosed.

The issue had been with Kudelski Group subsidiary OpenTV, which filed patent infringement counterclaims against the online giant in the US District Court for the Northern District of California. The move followed a complaint for declaratory judgment filed by Yahoo on 21 January 2016 to partially invalidate a patent suit accusing it of infringing seven patents held by OpenTV protecting aspects of interactive videos, cyber security and fantasy sports platforms. Kudelski had sent a letter to Yahoo in December outlining the alleged instances of infringement.

The counterclaims alleged that Yahoo indeed did infringe as many as ten US patents owned by OpenTV and identify several infringing products and services, including Yahoo Smart TV, Yahoo Connected TV, Yahoo TV, Yahoo interactive video advertisements, Yahoo fantasy gaming and Yahoo Screen.